The only options to get rid of the pre-tax funds are to:
- Roll them over to a company retirement account like the 401(k) or
- Convert the full amount and pay the taxes on the conversion.
Yes, if you rollover all pre-tax funds into your 401(k) then you are able to convert the after-tax funds into the Roth IRA without any issues.
For your 2024 tax return, you will enter the nondeductible traditional IRA contribution for 2024 and enter the basis from your 2023 Form 8606 line 14 when TurboTax asks about your prior basis. TurboTax will also ask about the value of all traditional/SEP/SIMPLE IRAs on December 31, 2024.
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